Needham ups Vaxcyte target to $140 after ‘best-case scenario’ data

Needham raised the firm’s price target on Vaxcyte to $140 from $95 and keeps a Buy rating on the shares. The stock in afternoon trading is up 39%, or $31.12, to $111.88. The data from the Phase 1/2 trial of VAX-31 are a “best-case scenario and another de-risking and platform validation event” for Vaxcyte, tells analyst tells investors in a research note. The firm says all dose levels showed a “robust” immune response, with the mid and high doses meeting the opsonophagocytic activity response non-inferiority criteria for all 20 matching Prevnar20 serotypes and the superiority standard response on all 11 incremental serotypes. The VAX-31 data lead Needham to believe that it has the potential to be a “significant disruptor” and capture a majority of the $7B pneumococcal vaccine market.